Digital transformation can generate 45% savings in purchases

Digital transformation can generate 45% savings in purchases

Digital transformation brings countless benefits to companies, and we all know that. However, when we analyze the gains it can offer to a company's purchasing department, the results can be surprising.

In this post we will present the main insights from the report “World-Class Procurement: Redefining Performance in the Digital Age” made by the International Consulting Hackett Group, a leading company in benchmarking and best practices for global companies.

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Digital transformation in favor of the purchasing sector

According to the study, purchasing areas that use the technologies 4.0 can achieve cost reductions of up to 17%. However, when they truly embrace digital transformation – that is, they change their mindset and do not just use a specific technology in a specific way – they can reduce costs by 45% or more.

The report also addresses the importance of freeing professionals from routine and repetitive activities, giving them more time and conditions to be strategic. Through digital transformation, it is possible to implement robotic solutions, which help to reduce errors in processes and, of course, to obtain more profit.

After the change in behavior, organizations will have to decide how to use the cost savings generated by digitalization. This may be a great opportunity to invest in employees, qualifying them for more strategic and important tasks for the company's business.

About the study “World-Class Procurement: Redefining Performance in the Digital Age”

The consultancy divided the report into benefits of digital transformation for national companies and multinational companies.

Cost reduction for world-class organizations was greater, with up to 43% savings from automation and 55% from embracing digital transformation as a whole. It is worth noting that automation, in this case, refers to the use of bots to replace operational work of professionals. Digital transformation impacts a company in a “holistic” way, including even potential restructuring.

One point to note from this study is that organizations are investing in technology, but they are forgetting to invest in human capital and professionalization. This does not mean that the company needs more people to deal with digitalization, but rather, more qualified professionals to meet this new scenario.

These changes will help companies speed up their purchasing processes, which is valuable, as speed is very important today. In addition, they provide a detailed view of spending by supplier, which provides greater negotiating power to further leverage the sector. This is just one example of the thousands of data points that companies will have access to to create a strategy that is more suited to their business.

As organizations collect and analyze more data, technologies can be enhanced to improve processes.

However, deciding how to carry out the digital transformation steps will vary according to the core business of each company. There is no standardized plan to be followed; each company must create its own. digital agenda to follow the steps without impacting the organization's objectives.

Did you like the insights on digital transformation in the purchasing area? Leave your opinion in the comments.

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